Ukraine Plans to Produce 15 Billion Cubic Meters of Shale Gas in Five Years

Ukraine will be able to produce 10-15 billion cubic meters of shale gas in five to seven years, Ukrainian Energy and Coal Industry Minister Yuriy Boiko has said live on Inter TV Channel. He said that these figures were based on the relevant experience of other countries.

The minister said that three companies would participate in an auction to obtain licenses for geological exploration and shale gas production at the Oleska and Yuzivska areas.

As for the environmental component of shale gas production in Ukraine, the minister assured that he did not expect any threats. "We have studied U.S. experience in this matter and we have not seen any environmental threats," Boiko said. He added that Ukraine would thoroughly study this issue and carefully apply production technologies. 

As reported, the holding of an open tender to select investors for geological exploration and shale gas production is scheduled for late February 2012. 

In September 2011, Naftogaz of Ukraine signed a preliminary agreement on the development and production of shale gas with ExxonMobil.

In addition, an investment agreement was signed between Ukrgazvydobuvannya (a subsidiary of Naftogaz of Ukraine) and Shell Exploration and Production Ukraine, which envisages up to USD 600 million as funding for projects on the production of shale gas. 

Source: NRCU